Investing.com -- Bill provided mixed guidance, lifting its outlook earnings, but cutting revenue estimates following fiscal fourth-quarter results that surprised to the upside.
Bill.com Holdings Inc (NYSE:BILL) fell more than 8% in early Friday trading following the report.
The company reported adjusted EPS of $0.59 on revenue of $296.0 million, compared with Wall Street estimates for EPS of $0.41 on revenue of $282.2M.
The better-than-expected results were supported by improving margins to 82.2% in Q3 from 78.3% a year earlier.
Looking ahead to Q1, adjusted EPS was guided in a range of $0.48 to $0.50 and revenue between $295.5M to $298.5M.
For 2023, adjusted EPS was expected in a range of $1.82 to $1.97 on revenue of $1.29 billion to $1.31B. That compared with prior guidance for adjusted EPS of $1.46 to $1.48 on revenue of $1.040B to $1.043B.
Wolfe analysts said the guidance is "noisy but better than first look."
"FY24 guidance was below expects, but more in-line when considering one-time items, and also conservative in our view. We see notable incremental upside to out-year estimates."
Deutsche Bank analysts said Bill offered conservative guidance.
"BILL initiated conservative (in our view) FY24 guidance relatively in-line with street top line estimates with stronger adj. EPS of $1.82-$1.97 (building in zero economic recovery)."
(Additional reporting by Senad Karaahmetovic)